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Loans
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
LOANS
NOTE 12:- LOANS

 

Outstanding loans as of December 31, 2022:

 

  Maturity
Date		  Rate   Loan
Balance		 
Marshall   Feb-24    12.00%  $10,207,500 
Celsius  Aug-23   12.00%   14,000,000 
W Capital  Mar-23   12.00%   3,373,878 
Convertible notes  Jun-23   20.00%   523,729 
SBA loan  May-50   3.80%   15,370 
Total Loans Outstanding          $28,120,477 
Less: current portion of long-term loans           (23,610,583)
Long-term loans, excluding current portion          $4,509,894 

 

The following table reflects the principal amount of loan maturities due over the next two years as of December 31, 2022:

 

Outstanding Loan  FY 2023   FY 2024   Total 
Marshall  $5,697,606   $4,509,894   $10,207,500 
Celsius   14,000,000    
-
    14,000,000 
W Capital   3,368,475    
-
    3,368,475 
Convertible notes   500,000    
-
    500,000 
SBA loan   14,000    
-
    14,000 
Total principal amount of loan payments by fiscal year  $23,580,081   $4,509,894   $28,089,975 
Interest accrued to December 31,2022            $30,502 
Total loan book value as of December 31, 2022            $28,120,477 

 

Description of Outstanding Loans

 

Marshall loan

 

In December 2021 MIG No. 1 Pty Ltd entered into a Secured Loan Facility Agreement with Marshall Investments MIG Pty Ltd which was payable in three tranches. The first tranche was received during December 2021 with an amount of $7.86 million. Tranche two and three were received during January and February 2022 with a total amount of $7.11 million. The loan matures in 2024 and bears interest at a rate of 12.00% per annum, payable monthly which commenced December 2021. This loan facility is secured by a general security agreement given by the Company. Principal repayments begin during 2023. 

  

The outstanding balance is $10.21 million as at December 31, 2022 with $5.70 million classified as a current liability and the remaining balance classified as a long-term liability.

 

Celsius loan

 

On February 23, 2022, Luna Squares LLC entered into the Co-Location Agreement with Celsius Mining LLC, in connection with this agreement, Celsius Mining LLC loaned Luna Squares LLC a principal amount of $20,000,000, for the purpose of funding the infrastructure required to meet the obligations of the Co-Location Agreement, for which Luna Squares LLC issued a Secured Promissory Note for repayment of such amount. The Secured Promissory Note accrues interest daily at a rate of 12% per annum. Luna Squares LLC is required to amortize the loan at a rate of 15% per quarter, principal repayments began at the end of September 2022. The Secured Promissory Note has a maturity date of August 23, 2023, the outstanding balance is $14.0 million as at December 31, 2022, all of which is classified as a current liability. Celsius Mining LLC filed for Chapter 11 bankruptcy protection on July 13, 2022. The Company does not anticipate any changes to the terms of the loan agreement due to Celsius Mining LLC’s bankruptcy filing.

 

W Capital loan

 

On September 2, 2022, Mawson Infrastructure Group Pty Ltd entered into a Secured Loan Facility Agreement with W Capital Advisors Pty Ltd with a total loan facility of AUD$3 million (USD$1.9 million). This was amended on September 29, 2022 and the loan facility was increased to AUD$8 million (USD$5.2 million). As at December 31, 2022, AUD$4.96 million (USD$3.37 million) has been drawn down from this facility, all of which is classified as a current liability. The Secured Loan Facility accrues interest daily at a rate of 12% per annum and is paid monthly. Principal repayments are due in March 2023. The Company expects to amend the current loan with W Capital Advisors Pty Ltd prior to the due date.

 

Convertible notes

 

On July 8, 2022, the Company issued secured convertible promissory notes to investors in the aggregate principal amount of $3,600,000 (the “Secured Convertible Promissory Notes”) in exchange for an aggregate of $3,600,000. The Secured Convertible Promissory Notes are convertible at the option of the holder at a price of $0.85 per share of our common stock. The Secured Convertible Promissory Notes bear interest of twenty percent per annum. One-half of the interest that accrues each month on the Secured Convertible Promissory Notes must be paid monthly. All unpaid principal, together with any then unpaid and accrued interest and other amounts payable under the Secured Convertible Promissory Notes, is due and payable if not converted pursuant to the terms and conditions of the Secured Convertible Promissory Note on the earlier of (i) one year after its issuance, or (ii) following an event of default.  On September 29, 2022, the Company entered into a letter variation relating to some of the Secured Convertible Promissory Notes, with an aggregate principal amount of $3.1 million, which gave those holders the option to elect for pre-payment (including accrued interest to maturity) subject to certain conditions. Payments of the interest may be made partially in common stock of the Company, at the Company’s election. All of the investors included in this letter variation elected for the pre-payment option and therefore there were $3.1 million principal repayments made during November 2022. The final convertible noteholder who was not a party to this variation opted to enter into an arrangement whereby it received pre-payment of interest, but agreed that repayment of the principal was not required until the originally agreed Repayment Date, all of which is classified as a current liability.